bestloans.co.uk Articles

The UK’s loan industry financial watchdog (The FSA), have recently requested that any firm operating within the financial services sector, must ensure the accuracy of any promotional material contained within their online promotional activities.

Accordingly, more than 30% of websites that were checked by the watchdog, were reported to have being displaying information, which was not considered to be “telling the full story” with regards to the features of certain products, which were on offer.

However, the watchdog has also stated that the vast majority of financial companies are compliant with their online promotional guidelines, and they also feel that the standard across the board is almost definitely improving.

Online mediums have fast become the weapon of choice for many consumers on the hunt for a variety of different financial products. In light of this trend, and as a means to protect consumers from any potential monetary difficulties, the watchdog is committed to ensuring that companies who do make their products available online, do so, on the understanding that any information that is displayed, is both clear and concise and can in no way mislead customers into making the wrong decision.

Christmas credit shopping has reached fever pitch amongst UK borrowers, with analysts suggesting that totals are already running well into the Billions.

According to studies by a leading supermarket chain, literally hundreds of thousands of consumers have already committed sizeable sums towards the festive season, with almost 10% of people stating they had already surpassed the £500 barrier. As an accumulative total, the chain estimates that almost 9 billion has been splurged thus far, by avid Christmas shoppers.

One expert commented that faired against other national holiday’s such as Easter, and even annual vacations, Christmas is undoubtedly the most financially taxing time of the year. The credit market, namely the personal loan and credit card sectors, witness a huge surge in business running up to December, as people source funds in order to cope with the season, however, there is also a secondary boom in January, as those same shoppers source additional loans as a means to consolidate their Christmas credit.

It is vitally important for loan shoppers to be aware that the highest propensities of financial troubles arise as a result of excessive spending at and around Christmas. Consumers are advised to approach their Christmas spending intentions with an air of caution, as a means to avoid over stretching themselves financially.

More than 60% of people who contact consumer help groups, are seeking practical advice with regards to issues of credit and loan management.

Personal financial management has become one of the Governments top focuses of late, following on from a recently conducted survey, which revealed that vast numbers of people around the country lack the basic knowledge required to budget their finances appropriately.

These findings are further supported through an announcement made by one advice group in particular, which claims that the number of people seeking budgetary help with regards to their personal loan and credit card commitments, have increased by more than 15% in the last 12 months alone.

A spokesperson for the group commented that due to the substantial rise in the number of people actively seeking help with regards to controlling their personal credit commitments, a new, tightly focused set of promotional documents would be circulated amongst those affected.

In addition, the Government has also divulged its intentions to tackle the problem at its source, through the introduction of money management classes in schools. It is also believed that similar classes will be offered to members of the adult community at a later date.

Mainstream credit acquisition for home loans and high street mortgages, have reduced substantially over the last few months, suggests data from a new report.

According to studies by the BBA, the accumulative total for all new home loan applications was down by almost 50% in the month of October, which totals less than £290 million.

One analyst suggested that the data is clear proof of a national slowdown in the mortgage market and could possibly indicate a decline in secured lending as a whole. This statement is further supported by the fact that the total of newly completed unsecured credit products had almost doubled in volume in the same month, faired against figures from the month previous.

It is suspected that changing economic conditions are causing many consumers to approach their personal finances, and indeed borrowing habits with a heightened sense of caution. It is also thought that a recent spate of negative media coverage on the performance of certain home loan providers may also be to blame.

In related news, a separate study has revealed that the average homeowner is balancing secured credit related commitments, which run in excess of £45,000.

Vast numbers of consumers regard loan insurance as being an important part of their plan, suggests a recent study.

Accordingly, more than 60% of personal loan borrowers feel that PPI or payment protection insurance is a valuable addition to their loan, due to the security such products offer in the event of serious illness or financial constraint. However, experts advise loan borrowers to be extra vigilant when considering such insurances, as they may not always necessary.

In respect of the PPI sector as a whole, personal loan borrowers are said to form the largest segment of the market, which many experts believe stands as a testament to the relevancy and indeed need for the product, to UK borrowers.

One of the biggest concerns amongst many Brits who commit to large value loans, is the fear as to what would happen if they were to be made redundant or were hindered by some other form of financial uncertainty. It is thought that this reason in particular, is the primary motivator behind the widespread uptake of the product.